Return to que Pasther Brands is a calendar year firm with operations in several countries. As part of its executive compensation plan, at January 1 2018, the company issued 260,000 executive stock options permitting executives to buy 250,000 shares of Pastner stock for $24 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2018 (graded vestingl. Pastner elects to separate the total award into four groups for tranches) according to the year in which they vest and measures the compensation cost for each vesting date as a separate award. The fair value of each tranche is estimated at January 1, 2018, as follows: points Amount Vesting Vesting Date Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec. 31, 2021 Faie Value per Option $4.60 $5.20 Required: 1. Determine the cr e ation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost ch of the four groups (tranches) separately. 2. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner uses the straight-line method to allocate the total compensation cost. Answer is not complete. Complete this quest by entering your answers in the the below Required Determine the compensation expense related to the options to be recorded each year 2018-2021, suming Peterses the right-line method to allocate the total c a tion poster in whole della Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1 2018, the company issued 420,000 executive stock options permitting executives to buy 420,000 shares of Pastner stock for $35 per share. One-fourth of the options vest in each of the next four years beginning at December 31, 2018 (graded vesting). Pastner elects to measure the fair value of all options on January 1, 2018, to be $4.40 per option (tranche) using a single weighted-average expected life of the options assumption. Required: 1. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Pastner allocates the compensation cost for each of the four groups (tranches) separately. 2. Determine the compensation expense related to the options to be recorded each year 2018-2021, assuming Paster uses the straight-line method to allocate the total compensation cost. Complete this question by entering your answers in the tabs below. Required Required 2 Determine the compensation expense related to the options to be recorded each year 2018-2021, mwing Paste allocates the compensation cost for each of the four groups (tranches) separately. (Round your answers to two decimal places. Enter your answers in thousands) Compensation Expense Recorded in: 2019 2020 2021 2018 Total Shares Vesting at: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Total Show Work
